Q1 2021 Market Recap Report

Low interest rates and shifting values continue to propel real estate to new highs across the country, coining the moniker ‘Roaring 20s’ industry-wide. Urban environments continue to rebound simultaneous to the growth of suburban markets. 

Palm Beach shows no signs of slowing, demonstrating ultra-low inventory levels and strong demand, with Miami gaining traction and reporting record new development sales. In whole, Miami-Fort Lauderdale-West Palm Beach Metro home values have gone up 7.8% over the past year and predicted to will rise and additional 9.4% in the next twelve months.

After a difficult year, New York City is now moving in synergy with its ‘sixth borough.’ In March alone, around 1,500 Manhattan residences were in contract for sale. That marked the highest number of deals for any one month in 14 years, according to UrbanDigs. Inventory is getting leaner, haven fallen 22.5% since Q3 2020 and is now only about 6.9% above the 20-year quarterly average. London is seeing similar traction, with just .6 months of available inventory and the strongest ultra-luxury market in the world.

After a packed ‘off-season’ in the Hamptons, residents are preparing for another summer of unprecedented activity, particularly in the rental market where we are seeing longer contracts become the norm. Those who contemplated a purchase in 2020 have begun to invest, tightening inventory and elevating prices.

Malibu has been a front runner of activity throughout the last year, as many opted for the low-stress, remote lifestyle that the enclave provides. As Los Angeles begins to reopen, however, we have seen an uptick in activity in Beverly Hills and Bel Air, where majestic estates are attractively priced and investors have a rare opportunity.

How long will these nationwide upward trends last? Likely as long as interested rates stay below 4% or so. Inflation is becoming a real risk, but many are choosing to find safe-harbor long-term investment in real estate, luxury in particular. So an air of added risk in the overall economy will likely show continued benefit for tangible investments.

Palm Beach Island

$12.8 Million Average Price (56% increase from Q1 2020)

34 Active Listings on PB Island

52 Pending Listings on PB Island

55 Sold Listings (77.5% increase from 2020 Q1)

1.4 Month Supply

*Palm Beach Island has the lowest inventory on record*

Q1 2021 exhibited 24 trades priced over $10 Million, twice as many as Q1 2020. Of these 24 trades, five were between $20M- $30M, two were between $30MM-$40MM, four were between $40M-$50M, two were between $50M-$60M, one was $73M, and one was $133M, marking a new record high for Palm Beach County.

Miami Beach

$655,000 Average Price (71% increase from Q1 2020)

1,093 Total Recorded Sales (23.6% increase from 2020 Q1)

146 Average Days on Market

3% Average Discount

$515 Average PPSF

Manhattan: 

$2,622,597 Average Price

2,552 Total Recorded Sales

213 Average Days on Market 

6.4% Average Discount

$1403 Average PPSF

Hamptons: 

$1,105,000 Average Price (45% increase from Q1 2020_

275 Total Recorded Sales Q1 2021

94 Average Days on Market ( -33% from Q1 2020)

3% Average Discount

16.9% of Homes Sell Above List (+276% from Q1 2021)

Beverly Hills:

$3,900,000 Average List Price

116 Total Recorded Sales Q1 2021

89 Average Days on Market (-19.8% from Q1 2020)

4% Average Discount

15.7% of Homes Sell Above List (-11.1% from Q1 2021)

London:

$697,799 Average List Price

2,671 Total Recorded Sales Q1 2021 

7 Average Days on Market 

13% Average Premium to List Price

.6 Months of Inventory